SEC Whistleblower Office Issues First Award

The Securities and Exchange Commission announced on Tuesday that an anonymous tipster was eligible to receive the first award paid under its Dodd-Frank-mandated whistleblower program. While the Commission has initially awarded only $50,000 to the whistleblower, the award could grow substantially as the government collects additional court-ordered sanctions in the case. Significantly, this sum represents the largest award (30% of the recovery) permissible under the whistleblower program. In line with the aggressive posture taken by federal regulators and prosecutors over the past few years, Sean McKessy, Chief of the SEC's Whistleblower Office, declared that "we are open for business."